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Media: Local and Regional Newspapers

My Lords, I am grateful to all noble Lords who have contributed to this debate and I congratulate my noble friend on raising such an important issue. I am glad that the importance of local media as regards local democracy and local representation was emphasised from all parts of the Committee. There is no doubt that local and regional newspapers lie at the heart of the democratic process. As my noble friend indicated, they are critical to the expression and the opportunities for the expression of views on behalf of the community. I listened carefully to the noble Lord, Lord Roberts. I am not too sure that the 21st century can quite replicate the circumstances which led to the emergence of Lloyd George in north Wales. But I understand entirely the way in which he has supported my noble friend Lord Harrison in emphasising the importance of the opportunity for expression from localities. It is not for us to comment on the other place in a significant way, but there is one matter on which I think we take public opinion with us and on which we can therefore speak assertively and with some real concern; namely, that a greater number of candidates for national positions as Members of Parliament should have local roots. There is a great danger in having a preponderance of people—I speak as one who may have been guilty of this—who are mobile and able to present themselves across the country. A substantial percentage of the House of Commons ought to be represented by those who come from their local communities and can best reflect their perspectives. That is at the heart of representation, and why the local media are important to the whole concept and health of our local democracy. Of course the Government share the anxieties that have been identified this afternoon. We certainly made it clear in the Digital Britain White Paper that strong, diverse and viable news media are integral to our democratic life. A diminution of the regional and local press affects the choice and plurality of information sources and editorial opinion, as well as the people employed in the sector such as editors and journalists. I accept the point made by my noble friend Lord Harrison, and reinforced by the noble Lord, Lord Luke, about journalists’ training. There is no doubt, as we know, that a significant proportion of those who reach the high ranks in journalism in this country, particularly in political journalism, have done so through the ranks of local reporting, so there is concern that if those opportunities decline, the structure of training and the development of skills in journalism will also decline. I emphasise that the Government are concerned about this. There has been an inquiry into journalism skills and an expression of the need to examine those skills and how they should be nurtured. There is no doubt that this is an issue of real concern, and I am grateful to noble Lords who have emphasised the need in the case of the regional and local press. The Publishing Skills Council carried out a skills survey last year that identified real gaps in training, which noble Lords have reflected in this debate. The skills sector has since produced an action plan that is now being implemented, so I can say that the Government have anticipated the concerns that have been reflected in this short debate and that action on the necessary training of journalists is in hand. It is clear that there is real and significant pressure on local and regional newspapers at present. The decline in advertising and in circulation is real and urgent. There are two factors. We cannot disregard the recession and the fact that the decline in resources in our communities has an effect on the public’s purchasing of newspapers as well as of other goods over which people have a choice. The downturn in the economy means that much less advertising is available to support newspapers. We know how important advertising is. We should not underestimate the concerns that are caused by the downturn in the economy, but we can look to the recovery from that, and we hope that local newspapers survive so that they can participate in that recovery. My noble friend Lord Harrison emphasised the principle underlying cause in his opening contribution, and the noble Lords, Lord Roberts and Lord Luke, reflected it in their remarks: the growth of the internet and online advertising as a direct competitor to newspapers and the news media. I shall cite some statistics. The value of regional newspaper advertising fell from £2.8 billion to £2 billion between 2002 and 2008. At the same time, the value of internet advertising grew from £0.2 billion to £2.8 billion. That is a real competitive challenge, which is having a dramatic effect on newspapers and helps to explain a great number of difficulties that they face. Nevertheless, many local and regional newspapers across the country continue to remain viable and to provide an essential service for their readers. Noble Lords have been kind enough in their contributions to reflect on their local press. I will not miss this opportunity to reflect that the Oldham Chronicle is an evening daily that has been going for over 150 years. I attest to the obvious fact made by other noble Lords that, were an organ of such significance to go, so would a crucial linchpin of local democracy and community. Fortunately, despite its financial difficulties, the Chronicle is presently still printing each weekday. There have also been amalgamations. We note that Trinity Mirror has announced that three of its west London titles are to be distributed free, extending their reach to far more homes than their current, paid-for editions. Noble Lords implied that it is all right for big companies to sustain free editions and that this shows that the market has declined for paid newspapers across the country. However, these are important initiatives in the areas they are viable, where the advertising is significant and the group is big enough to sustain the position to extend a local newspaper. We have been concerned to take certain steps in what is a genuine problem with local and regional news media. We are concerned about opportunities to introduce local and regional news consortia that can deliver an innovative and multi-platform news offering. That is clearly going to need some support, which is why the Government have identified the underspend on digital switchover of the BBC licence money. It is important that these consortia provide effective, accurate and dispassionate local news in their areas. There is no doubt that otherwise the pressures could prove so great that some areas would be devoid of that service. We are also inviting the Office of Fair Trading to examine whether the media merger rules and market definitions properly reflect the current state of converged media. The OFT has amended its guidance to ensure improved synergies between itself and Ofcom in their approach to media markets. We are concerned with increasing Ofcom’s sensitivity to the challenges to the industry. We are bringing forward at the earliest opportunity proposals to address media ownership rules. These proposals, which will of course be subject to scrutiny by both Houses, follow Ofcom’s review last November. The noble Lord, Lord Luke, emphasised this point, raised also by my noble friend Lord Harrison. We are looking at the Audit Commission’s recent review of local authority publicity and how the Government’s code of recommended practice on local authority publicity might be amended. My right honourable friend the Secretary of State for the DCMS, on whose behalf I am speaking at this Dispatch Box today, has written to his counterpart in the Department of Communities and Local Government, drawing his attention to this important question. I do not want to exaggerate the issue. None of us would deny the right of local authorities to communicate effectively with their local communities on the services they provide. However, when these perhaps stray into more tendentious comment and are sustained by advertising which, as the noble Lord, Lord Luke, hinted, might otherwise be available to local news media, then an element of unfair competition might come in. We are concerned about the relatively small number of cases. The number of local authorities where the line has been overstepped is not much more than a handful. We are asking the Secretary of State with responsibility for local government to look at practice and to evaluate the position against this changing situation. I have no doubt that if emendations are effected, local authorities will pay due regard to any changes in advice. As is his wont, my noble friend Lord Harrison has raised an enormously important issue. A debate of this short duration and limited participation can scarcely do justice to a linchpin of local democracy. However, I emphasise that the Government are fully seized of the financial and economic challenge to local and regional press. It is important that action is taken to sustain local news as effectively as we can. None of us has any doubts that this is the basis of effective participation in local democracy and local interest, and is at the heart of the greater democracy represented by Parliament. That is why we need to cherish the grass roots of our democracy. I am grateful to my noble friend for having introduced this important debate. Sitting suspended.